MIRA INFORM REPORT

Report Date :

19.02.2011

IDENTIFICATION DETAILS

Name :	VIETNAM LIVESTOCK CORPORATION BRANCH

Registered Office :	87 Nguyen Du Street, Ben Nghe Ward - 1 District - Ho Chi Minh City - Vietnam

Country :	Vietnam

Financials (as on) :	31.12.2009

Date of Incorporation :	11.05.2006

Com. Reg. No.:	4116000640

Legal Form :	branch of Vietnam Livestock Corporation - One Member Company Limited

Line of Business :	trading animal feed materials in Vietnam southern market

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
Payment Behaviour :	No Complaints
Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 30, 2010

Country Name

Previous Rating

(01.04.2010)

Current Rating

(30.06.2010)

Vietnam

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

SUBJECT IDENTIFICATION & LEGAL FORM

English Name		VIETNAM LIVESTOCK CORPORATION BRANCH
Vietnamese Name		CHI NHANH TONG CONG TY CHAN NUOI VIET NAM
Trade name		VIETNAM LIVESTOCK CORPORATION BRANCH
Other Trade name		VIETNAM NATIONAL LIVESTOCK CORPORATION BRANCH
Type of Business		Branch
Year Established		2006
Business Registration No.		4116000640
Date of Registration		11 May 2006
Place of Registration		Business Registration Office (Planning and Investment department of Hochiminh City)
Tax code		0100104443-004
Total Employees		20

COMPANY address

Head Office
Address		87 Nguyen Du Street, Ben Nghe Ward - 1 District - Ho Chi Minh City - Vietnam
Telephone		(84-8) 3822 1153 - 3822 1158
Fax		(84-8) 3823 4307
Website		www.vilico.vn

SUBSIDIARIES AND RELATED COMPANIES

PARENT COMPANY - VIETNAM LIVESTOCK CORPORATION - ONE MEMBER COMPANY LIMITED
Business Registration		0100104443
Date of Registration		30 Jun 2010
Place of Registration		Hanoi Department of Planning and Investment
Registered Capital		225,000,000,000 VND
Tax code		0100104443
Address		No. 519 Minh Khai Str - Hai Ba Trung District - Ha Noi City - Vietnam
Tel		(84-4) 3862 6763/ 3862 1814
Fax		(84-4) 3623 6545/ 3636 5666
Website		http://www.vilico.vn

DIRECTORS

1 . NAME		Mr. VO DINH AN
Position		Branch Director
ID Number/Passport		024541649
Resident		94 Mac Dinh Chi Street, Da Kao Ward - 1 District - Ho Chi Minh City - Vietnam
Nationality		Vietnamese
Qualification		Management

2 . NAME		Ms. NGUYEN NGOC CAM TU
Position		Import – Export Manager
Resident		Ho Chi Minh City - Vietnam
Nationality		Vietnamese
Qualification		Management

BUSINESS NATURE AND ACTIVITIES

The subject specializes in trading animal feed materials in Vietnam southern market.

IMPORT & EXPORT ACTIVITIES

IMPORT:
· Types of products		Materials
· Market		India, USA, Canada...

EXPORT:
· Types of products		N/A

BANKERS

1. VIETNAM EXPORT IMPORT COMMERCIAL JOINT STOCK BANK
Address		No. 7 Le Thi Hong Gam Street Nguyen Thai Binh Ward - 1 District - Ho Chi Minh City - Vietnam
Telephone		(84-8) 3821 0055
Fax		(84-8) 3829 6063

2. VIET NAM BANK FOR AGRICULTURE AND RURAL DEVELOPMENT HO CHI MINH CITY BRANCH
Address		No.2A Pho Duc Chinh Street - 1 District - Ho Chi Minh City - Vietnam
Telephone		(84-8) 3822 2752
Fax		(84-8) 3829 4063

SHAREHOLDERS

NAME		VIETNAM NATIONAL LIVESTOCK CORPORATION BRANCH
Business Registration		4116000640
Date of Registration		11 May 2006
Place of Registration		Business Registration Office (Planning and Investment department of Hochiminh City)
Tax code		0100104443-004
Address		87 Nguyen Du Street, Ben Nghe Ward - 1 District - Ho Chi Minh City - Vietnam
Tel		(84-8) 3822 1153 - 3822 1158
Fax		(84-8) 3823 4307
Percentage		100%

FINANCIAL DATA

BALANCE SHEET
Unit: One VND
Balance sheet date	31/12/2009	31/12/2008
Number of weeks	52	52
ASSETS
A – CURRENT ASSETS	24,257,040,649	66,810,348,046
I. Cash and cash equivalents	2,991,249,795	13,040,560,293
1. Cash	2,991,249,795	13,040,560,293
2. Cash equivalents	0	0
II. Short-term investments	0	0
1. Short-term investments	0	0
2. Provisions for devaluation of short-term investments	0	0
III. Accounts receivable	10,373,267,327	40,232,316,006
1. Receivable from customers	9,321,475,985	37,701,544,338
2. Prepayments to suppliers	980,016,273	938,559,750
3. Inter-company receivable	0	0
4. Receivable according to the progress of construction	0	0
5. Other receivable	71,775,069	1,592,211,918
6. Provisions for bad debts	0	0
IV. Inventories	3,733,171,285	2,575,600,397
1. Inventories	3,733,171,285	2,575,600,397
2. Provisions for devaluation of inventories	0	0
V. Other Current Assets	7,159,352,242	10,961,871,350
1. Short-term prepaid expenses	0	9,354,687,240
2. VAT to be deducted	11,229,482	1,469,624,120
3. Taxes and other accounts receivable from the State	0	0
4. Other current assets	7,148,122,760	137,559,990
B. LONG-TERM ASSETS	312,734,238	127,297,668
I. Long term account receivable	48,936,000	48,936,000
1. Long term account receivable from customers	0	0
2. Working capital in affiliates	0	0
3. Long-term inter-company receivable	0	0
4. Other long-term receivable	48,936,000	48,936,000
5. Provisions for bad debts from customers	0	0
II. Fixed assets	68,021,153	47,021,694
1. Tangible assets	68,021,153	42,021,694
- Historical costs	161,651,113	110,201,420
- Accumulated depreciation	-93,629,960	-68,179,726
2. Financial leasehold assets	0	0
- Historical costs	20,000,000	0
- Accumulated depreciation	-20,000,000	0
3. Intangible assets	0	5,000,000
- Initial costs	0	20,000,000
- Accumulated amortization	0	-15,000,000
4. Construction-in-progress	0	0
III. Investment property	0	0
Historical costs	0	0
Accumulated depreciation	0	0
IV. Long-term investments	0	0
1. Investments in affiliates	0	0
2. Investments in business concerns and joint ventures	0	0
3. Other long-term investments	0	0
4. Provisions for devaluation of long-term investments	0	0
V. Other long-term assets	195,777,085	31,339,974
1. Long-term prepaid expenses	195,777,085	31,339,974
2. Deferred income tax assets	0	0
3. Other long-term assets	0	0
TOTAL ASSETS	24,569,774,887	66,937,645,714

LIABILITIES
A- LIABILITIES	19,004,479,480	62,874,782,794
I. Current liabilities	19,004,479,480	62,874,782,794
1. Short-term debts and loans	9,648,004,000	14,306,472,921
2. Payable to suppliers	2,876,325,412	46,955,073,587
3. Advances from customers	4,997,118,600	0
4. Taxes and other obligations to the State Budget	6,989,747	0
5. Payable to employees	266,717,264	0
6. Accrued expenses	440,000,000	0
7. Inter-company payable	498,722,750	1,499,073,915
8. Payable according to the progress of construction contracts	0	0
9. Other payable	270,601,707	114,162,371
10. Provisions for short-term accounts payable	0	0
II. Long-Term Liabilities	0	0
1. Long-term accounts payable to suppliers	0	0
2. Long-term inter-company payable	0	0
3. Other long-term payable	0	0
4. Long-term debts and loans	0	0
5. Deferred income tax payable	0	0
6. Provisions for unemployment allowances	0	0
7. Provisions for long-term accounts payable	0	0
B- OWNER’S EQUITY	5,565,295,407	4,062,862,920
I. OWNER’S EQUITY	5,545,295,407	4,062,862,920
1. Capital	5,560,635,819	4,062,862,920
2. Share premiums	0	0
3. Other sources of capital	0	0
4. Treasury stocks	0	0
5. Differences on asset revaluation	0	0
6. Foreign exchange differences	-15,340,412	0
7. Business promotion fund	0	0
8. Financial reserved fund	0	0
9. Other funds	0	0
10. Retained earnings	0	0
11. Construction investment fund	0	0
II. Other sources and funds	20,000,000	0
1. Bonus and welfare funds	20,000,000	0
2. Sources of expenditure	0	0
3. Fund to form fixed assets	0	0
MINORITY’S INTEREST	0	0
TOTAL LIABILITIES AND OWNER’S EQUITY	24,569,774,887	66,937,645,714

PROFIT & LOSS STATEMENT
Description	FY2009	FY2008
1. Total Sale	628,303,342,870	489,753,061,370
2. Deduction item	0	0
3. Net Sale	628,303,342,870	489,753,061,370
4. Costs of goods sold	590,867,730,975	461,464,938,235
5. Gross profit	37,435,611,895	28,288,123,135
6. Financial income	1,237,065,775	2,055,337,194
7. Financial expenses	9,427,002,276	5,222,418,341
- In which: Loan interest expenses	0	3,537,540,783
8. Selling expenses	25,374,997,392	20,570,289,441
9. Administrative overheads	3,283,759,934	4,271,022,214
10. Net operating profit	586,918,068	279,730,333
11. Other income	376,739,363	130,775,279
12. Other expenses	84,987,590	12,659,804
13. Other profit /(loss)	291,751,773	118,115,475
14. Total accounting profit before tax	878,669,841	397,845,808
15. Current corporate income tax	0	0
16. Deferred corporate income tax	0	0
17. Profit after tax	878,669,841	397,845,808

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

Description	FY2009	FY2008	Average Industry
Current liquidity ratio	1.28	1.06	1.94
Quick liquidity ratio	1.08	1.02	0.98
Inventory circle	187.32	179.17	9.29
Average receive period	6.03	29.98	54.01
Utilizing asset performance	25.57	7.32	2.21
Liability by total asset	77.35	93.93	58.72
Liability by owner equity	341.48	1,547.55	256.76
Ebit / Total asset (ROA)	3.58	5.88	7.90
Ebit / Owner's equity (ROE)	15.79	96.86	25.68
Ebit / Total Sale (NPM)	0.14	0.80	4.18
Gross profit / Total Sale (GPM)	5.96	5.78	15.30
Note: The Average Industry was calculated by Vietnam Credit based on our owned statistical data

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

Trade Morality		Good
Liquidity		Medium
Payment status		Average
Financial Situation		Above Average
Development trend		Stable
Litigation data		No Record
Bankruptcy		No Record
Payment Methods		Direct payment by cash or T/T, LC
Sale Methods		Wholesaler
Public opinion		Good

CREDIT INQUIRY: 1,250,000 USD

Accept!

INTERPRETATION ON THE SCORES

The subject is a branch of VIETNAM LIVESTOCK CORPORATION - ONE MEMBER COMPANY LIMITED (VILICO) in southern Vietnam. (VILICO is a strong state owned corporation in Vietnam and operating under the management of Ministry of Agriculture and Rural Development of Vietnam). The subject was set up in 2006 under business registration No.4116000640.
According to the assignment of subject's parent, subject has the right to trade and sign contracts with partners. So, the main activities of the subject at present are: finding suppliers, importing and trading animal feed materials.

Subject imports materials mainly from India, USA and Canada. It responses supplying materials for manufacturers in southern provinces. Subject is supported a lot by its parent in operating.
Business activity of the subject is busy. The position of the subject in the industry is medium. The premises and facilities of the subject are average. The management board have many experience in its field. They have established a stable traditional clients and good relationships with suppliers. Competition capacity of the subject is fairly. It is reliable for the medium business transactions with the guarantee by its parent.

APPENDIXES

INDUSTRY DATA

Industry code	Growth speed (%)		Total employees 2009 (Thousand)		Total enterprises	Annual average capital of enterprises
	Predict 2010	2009
Agriculture, Forestry and Fishing	2.8	3.0	24,788.5		2,399	50,530
Trade and Services	7.5	11	10,517.9		79,181	1,754,973
Construction	7	11.3	2,692.8		17,783	248,268
Manufacturing	12	7.6	7,591.2		30,786	967,068

ECONOMIC INDICATORS

			2009	2008		2007
Population (Million person)			87	86.1		85.1
Gross Domestic Products (US$ billion)			91	84.9		71.2
GDP Growth (%)			5.32	6.2		8.5
GDP Per Capita (US$)			1,080	1,040		814
Inflation (% Change in Composite CPI)			6.88	24.4		8.3

SERVICE TRADE PERFORMANCE

Billion USD			2009	2008		2007
Exports			56.6	62.9		48.6
Imports			68.8	76.6		58.9
Trade Balance			-12.2	-14.6		-10.3

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.18
UK Pound	1	Rs.73.04
Euro	1	Rs.61.43

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.